Mergers In India

MERGERS AND ACQUISITIONS IN INDIA: The process of mergers and acquisitions has gained substantial importance in today's corporate world. This process is extensively used for restructuring the business organizations. In India, the concept of mergers and acquisitions was initiated by the government bodies. Some well known financial organizations also took the necessary initiatives to restructure the corporate sector of India by adopting the mergers and acquisitions policies. The Indian economic reform since 1991 has opened up a whole lot of challenges both in the domestic and international spheres. The increased competition in the global market has prompted the Indian companies to go for mergers and acquisitions as an important strategic choice. The trends of mergers and acquisitions in India have changed over the years. The immediate effects of the mergers and acquisitions have also been diverse across the various sectors of the Indian economy. India is now one of the leading nations in the world in terms of mergers and acquisitions.

THE LATEST TRENDS Till recent past, the incidence of Indian entrepreneurs acquiring foreign enterprises was not so common. The situation has undergone a sea change in the last couple of years. Acquisition of foreign companies by the Indian businesses has been the latest trend in the Indian corporate sector. There are different factors that played their parts in facilitating the mergers and acquisitions in India. Favorable government policies, buoyancy in economy, additional liquidity in the corporate sector, and dynamic attitudes of the Indian entrepreneurs are the key factors behind the changing trends of mergers and acquisitions in India.

MAJOR MERGERS AND ACQUISITIONS IN INDIA Recently the Indian companies have undertaken some important acquisitions. Some of those are as follows: Hindalco acquired Canada based Novelis. The deal involved transaction of $5,982 million.  Tata Steel acquired Corus Group plc. The acquisition deal amounted to $12,000 million.  Dr. Reddy's Labs acquired Betapharm through a deal worth of $597 million.  Ranbaxy Labs acquired Terapia SA. The deal amounted to $324 million.  Suzlon Energy acquired Hansen Group through a deal of $565 million.  The acquisition of Daewoo Electronics Corp. by Videocon involved transaction of $729 million.  HPCL acquired Kenya Petroleum Refinery Ltd.. The deal amounted to $500 million.  VSNL acquired Teleglobe through a deal of $239 million. 